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What CPU to use AMD or Intel?

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Go AM3. The only place you will see a difference with an i7 chip is in high end software apps such as photoshop, movie editing, etc. Even in those high end apps, the difference isn't huge. In video games, the difference between the two is less than 10 fps (usually less than 5) on average.

Also, along with the AM3 socket comes future upgradability. AMD has been using basically the same socket design since they came out with the AM socket. The AM3 chips will work on pretty much all of the AM2 motherboards with no trouble. If they keep this up, you'll be able to upgrade your CPU when the time comes without having to buy a whole new computer. Intel likes to make a new socket every time that they have a new line of chips come out.
 
you must also consider that since amd tends to stick with a socket longer your window of upgradablility is far wide than with intel. that can factor into total cost of ownership making it a better value even if intel on its face is cheaper for the performance initially
 
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